Tetra Pak’s production doubles at factory in China ‘due to demand’.
The second production line at the Hohhot site, in Inner Mongolia, part of an investment of €53m,started up last month and will increase production capacity.
China’s booming economy, rising middle-class and the trend towards urbanisation puts it on track to become one of the fastest growing markets for liquid dairy consumption globally, said Tetra Pak.
Surge in demand
A spokesperson said: “With the new line expanding production capacity at the plant by 10bn cartons to produce 20bn cartons a year and China’s demand for liquid dairy products[to]surge by more than 40%, the production line is a key part of Tetra Pak’s long-term investment in the region.
“As one of Tetra Pak’s most technologically advanced converting plants with large production capacity, our Hohhot converting plant features a world-class manufacturing management system and can provide comprehensive services for customers to help them reduce costs, increase efficiency and achieve sustainable growth,” the spokesperson said.
Forecasting demand in the region, the packaging giant has increased on-site capabilities and enhanced support for new products.
“China’s robust growth in combination with our market insight and analysis of consumer trends led us to invest in enhancing supply chain support for sustainable customer growth, support for new product development and market exploration, and enhanced production capacity.
“With about 40bn packages delivered in 2011, China is a top market, in terms of package deliveries, for Tetra Pak. The total production capacity Tetra Pak China’s four converting plants in Foshan, Kunshan, Beijing and Hohhot will reach is 60bn cartons,” the spokesperson added.
The spokesperson said the new line will focus sustainability in two areas by providing a “sustainable business for our customers, and the environmental sustainability of the plant itself.”
“The Hohhot facility is the first manufacturing plant in Inner Mongolia, and among the first in China, to use green electricity. The green electricity supplied to Tetra Pak comes primarily from wind power that contributes significant saving of CO2 emissions.
“Hohhot is the first Tetra Pak plant worldwide that has special corridors for plant tours, and conserves energy due to less opening of doors.
“We have also invested to ensure that the production line itself takes advantage of the latest advancements in technology to reduce energy consumption, using state of the art Tetra Pak machinery.”
Tetra Pak’s 2011 Dairy Index showed the demand for liquid dairy had been steadily increasing.
“According to the 2011 Dairy Index, demand for liquid dairy is expected to surge by more than 40% between 2009 and 2013 – from around 25bn litres to some 35bn litres – driven by more than a 60% rise in consumption of lactic acid drinks and more than a 50% increase in consumption of baby and toddler milk,” said the spokesperson.
“Additionally, China and India make up 33% of global consumption of liquid dairy, and China is expected to be one of the fastest growing markets globally for liquid dairy.”